Megatrends

The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.

Luxury Cars in Sweden

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Executive Summary

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If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE!

PROSPECTS

Bonus-Malus scheme drives sales of fossil fuel cars during the first half of the year

Category growth in 2018 can be attributed to the government’s Bonus-Malus scheme, which aims to promote sales of greener cars and came into effect in July. Prior to this, sales of luxury cars rose, driven by fossil fuel vehicles, while electric cars struggled.

Electric cars on the rise but structural issues could limit their potential

Desperate to lower carbon dioxide emissions from vehicles, the Swedish government introduced various incentives over the review period, with some success. For instance, the number of new registered electric, hybrid and energy efficient (EEV) cars increased dramatically from 3,559 in 2012 to 38,411 in 2017, according to Statistics Sweden, and is expected to continue rising rapidly.

Luxury carmakers benefit from the Bonus-Malus scheme

Fossil fuel cars recorded a relatively strong increase in sales during the first half of 2018 due to the Bonus-Malus scheme, with the clear leader in the luxury segment being Porsche. Another factor behind the rise in sales was increasing demand for lower-end luxury cars from high-middle-income households.

COMPETITIVE LANDSCAPE

Lower-end luxury cars lead the category thanks to a growing middle-class

The leading brand in luxury cars in Sweden in 2017 was Audi, followed by BMW and Mercedes-Benz. Their positions can be attributed to strong volume sales and lower prices than those of higher-end luxury vehicles.

Political uncertainty and its effect on luxury cars

Policy issues have come to the fore for car manufacturers as Brexit looms closer. It is becoming increasingly likely that the UK will leave the European Union with no deal, with this having a huge impact on the British car manufacturers Jaguar and Rolls Royce.

Growth of electric cars to challenge the luxury segment

The trend towards lower emissions has reached the luxury segment and even the higher-end segment, with Maserati planning to offer electric cars so as to compete with Tesla. In Sweden, current competition in the luxury electric cars space is chiefly between Tesla, the BMW i3 and the Jaguar I-Pace.

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